Iron ore futures remained under pressure on Monday amid continued uncertainty surrounding China’s steel demand outlook and rising supply pressure from major miners.
Market sentiment was weighed down by increased iron ore shipments to China from major global suppliers, adding pressure to already high port-side inventories.
Weak Chinese macroeconomic and property sector data also weighed on sentiment. According to China’s National Bureau of Statistics, property investment declined by 13.7pct in the January-April period, while property sales and new construction starts also recorded declines during the period.
Market insiders also pointed to reports suggesting Beijing may shift policy focus toward energy security and domestic self-sufficiency amid concerns over rising energy pressures linked to the Middle East conflict. The reports indicated that China could ease some restrictions on the domestic coal sector, including measures related to safety inspections and overcapacity controls, potentially increasing coal supply and pressuring prices. The development weighed on coking coal prices and dragged the broader ferrous complex lower.
Some analysts said iron ore prices could continue to find near-term support from still-high steel production levels at Chinese mills. However, rising pressure on finished steel prices may squeeze mill margins and eventually affect iron ore consumption.
On the Dalian Commodity Exchange, the most-traded September iron ore contract closed unchanged at yuan 817 (USD 120) per ton. Coking coal and coke futures increased by 0.57pct and 1.19pct to yuan 1,242.5 (USD 183) and yuan 1,826.5 (USD 268) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures edged up by 0.15pct to yuan 3,255 (USD 478) per ton, while HRC futures rose by 0.26pct to yuan 3,478 (USD 511) per ton. Wire rod futures declined by 0.38pct to yuan 3,370 (USD 496) per ton, while stainless steel futures fell by 1.36pct to yuan 14,895 (USD 2,191) per ton.
1 USD / 6.79 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,348.00 | ▼ -0.53 | ▼ -0.42 |
| Hot Rolled Coils | 3,429.00 | ▼ -1.04 | ▼ -0.50 |
| Rebar | 3,206.00 | ▼ -1.32 | ▼ -0.81 |
| Stainless Steel | 14,680.00 | ▼ -1.21 | ▼ -1.06 |
| Iron ore | 803.00 | ▼ -1.11 | ▼ -0.81 |
| Coke | 1,771.50 | ▼ -2.50 | ▼ -2.00 |
| Coking Coal | 1,208.50 | ▼ -1.95 | ▼ -1.37 |